Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

In the May budget the government was acutely aware of the risks posed by the global financial crisis. This included an awareness that the situation could get worse. That is why we delivered a balanced budget that combined support for families with a strong surplus to act as a buffer should global conditions deteriorate. Unfortunately, the deterioration in the global economy has now occurred. The world changed dramatically with the collapse of Lehman Brothers in mid-September. Borrowing costs soared, credit markets froze and stock markets around the world suffered significant losses. This has shifted the balance of risks right around the world. (Time expired)